The Ethics of Downsizing

Downsizing refers to a company’s decision to reduce its workforce for reasons other than poor performance, criminal conduct, or unethical behavior on the part of those being let go. The word is a euphemism meant to soften the blow as much for the company as it is for the soon-to-be eliminated. There is nothing wrong with making a difficult task easier to bear. In fact, there are good ethical reasons for doing so. Still there is no getting around the fact that downsizing is a type of layoff, with all that this implies. The ethical manager will keep in mind what is really going on when he or she is charged with letting good people go.

1. Summarize the case

2. Do you agree that downsizing is an ethical issue?

3. What are some guidelines for downsizing? For instance, do it in person.

4. What if you don’t agree with the reason for the downsizing? Ethically, how would you respond? As a layoff agent, would you be willing to resign?